New Car Loans With Bad Credit

People with bad credit should still be able to get a new car in today’s market.

The recent slump in new car sales should make it easier for those who have bad credit and a steady income to drive away in a new car. The main thing a person will need to get a car loan with bad credit is a steady source of income such as a good job.

Those who have a source of verifiable income should be able to get a new car loan. The amount of money required varies depending on the amount of the loan but it is usually several hundred dollars a week or between $1,000 and $2,000 a month minimum.

Proof and requirements for a new car loan with bad credit

The dealer or lender may demand proof of this income such as a paycheck, a W-2 or bank statement. A good idea is to call ahead to the dealer or lender and ask what paperwork they require before going there.

Dealers and lenders may have other requirements as well as a source of income. They might require a person to have held their job for a certain period of time usually nine months. They may also not loan money to those who have discharged a bankruptcy within the last eight years.

Lenders and dealers maybe willing to waive these requirements for people who come in with a good trade in or a large down payment. An individual who is willing to make a large down payment shouldn’t have to worry about these requirements even with bad credit.

If the dealer isn’t willing to work with you even after you’ve done this go elsewhere. There are lots of car dealers and you should be able to find one who’s willing to work with you.

The dealer wants to get rid of the cars in the lot

New car dealers are willing to work with people with bad credit because they loose money when cars sit on their lots unsold. Many dealers now have hundreds of unsold cars sitting on their lots. This means that many dealers are now willing to work with people they normally would not listen to.

Car dealers are also willing to sell a car to a person with bad credit because a car is an asset that can be repossessed. In most car loans the vehicle itself is the collateral so the value of the car underwrites part of the loan.

One way to try and get a new car loan is to try and buy models or brands of vehicles that aren’t selling. The dealers of such vehicles will have more incentive to work with you. They will also be willing to strike special deals to get vehicles that don’t sell off their lots. People looking for a good deal on a new car should watch the news and see what brands and models aren’t selling.

The way to get a new car loan is to not be afraid to talk to the car salespeople and be prepared to haggle with them. Tell the car salespeople what you want, explain your credit situation and tell them what you’re willing to pay. Then make it clear to them that you will go elsewhere if you don’t get what you want. Ask them what special deals are available and be a little flexible in your demands.

Those who are willing to wheel and deal should be able to get a good deal on a new car in today’s market even if they have bad credit.